Gold may 'free fall' if it hits $1,150: Expert

Gold enjoyed a strong January amid stock market volatility but has pared some of its gains this month. The metal on Friday posted its biggest one-day loss since December 2013.

Although it was up about half a percent on Monday afternoon, gold will slip to $1,150 an ounce, roughly $90 lower than its current level, a futures expert said.

"If it gets below that it could be a free fall and you're gonna see people jumping on the short wagon from all over," said Todd Colvin, senior vice president of futures and options firm Ambrosino Bros., Monday on CNBC's "Power Lunch."

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Gold could slide down to $1,000 before buyers jump back into the market, Colvin said. The metal right now sits at "a short-term top," he added.